Continued investor redemptions coupled with potential negative developments in the capital markets—particularly a resurgence of consumer price inflation and a reassessment of rate cut expectations—could set off a doom loop, where investors rush to redeem their shares while prices are artificially inflated, encouraging others to do the same, ultimately resulting in a chaotic run.

REIT managers are keenly aware of this possible outcome. To combat it, they have deployed the true extent of their talents—lobbying the government and Federal Reserve for special privileges and bailouts.